FINRA SIE EXAM | PRACTICE QUESTIONS
AND ANSWERS RATED A+ | 2025/2026
GUIDE
Upon Expiration, all in-the-money S&P 100 Index call options are settled
by the delivery of which of the following? - Correct Answer - Cash
Which of the following statements is true about treasury stock? - Correct
Answer - It is issued stock that has been subsequently reacquired by the
corporation
In the event of a stock split, which of the following parties is required to
maintain a record of the shareholders eligible to receive the additional
shares? - Correct Answer - Transfer Agent
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program? - Correct Answer - Designating an AML
compliance officer
A registered representative (RR) wants to participate in a private
securities transaction. Which of the following actions must the RR take?
- Correct Answer - Send written notice to his supervisor outlining the
activity and compensation structure
A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and
simultaneously buys 100 shares of ABC stock for $35 per share. The
customer will break even when the stock is selling at what price per
share at expiration? - Correct Answer - $38
The call provision of a bond stipulates which of the following factors? -
Correct Answer - Call date and call price
, When is interest on Treasury notes paid? - Correct Answer -
Semiannually
The owner of which of the following products is MOST exposed to
inflationary risk? - Correct Answer - Treasury bonds (because it's long-
term)
A registered representative (RR) who wants to place a mutual fund
advertisement must obtain written approval from which of the following
parties? - Correct Answer - A registered principal of the RR's firm
A company announces a tender offer to its shareholders with the intent
to buy a maximum of 1 million shares of its outstanding stock at $10 per
share and sets no minimum number of shares to be purchased. An
investor wants to participate in this offer and tenders his 1,000 share
position. At the close of the offer period, only 900,000 shares have been
tendered. How many, if any, of the investor's shares will the company
purchase? - Correct Answer - 1,000 (1,000 x 100 = 100,000 shares; 1
million - 900k = 100k)
Broker-dealer ABC seeks to underwrite a municipal securities offering by
a local town in which the mayor is currently seeking re-election. A
municipal finance professional who resides in the town and works for
ABC contributed $200 to the mayor's re-election campaign 13 months
ago. If the employee wants to support the campaign further without
impacting the municipal securities business of the firm, he is permitted to
make an additional contribution of up to what amount? - Correct Answer
- $50 ($250 is the limit PER election)
Which of the following stakeholders has first claim priority in a Chapter
11 proceeding? - Correct Answer - Secured debt holders
[Order of liquidation at bankruptcy:
AND ANSWERS RATED A+ | 2025/2026
GUIDE
Upon Expiration, all in-the-money S&P 100 Index call options are settled
by the delivery of which of the following? - Correct Answer - Cash
Which of the following statements is true about treasury stock? - Correct
Answer - It is issued stock that has been subsequently reacquired by the
corporation
In the event of a stock split, which of the following parties is required to
maintain a record of the shareholders eligible to receive the additional
shares? - Correct Answer - Transfer Agent
Which of the following actions is required of a broker-dealer's anti-money
laundering (AML) program? - Correct Answer - Designating an AML
compliance officer
A registered representative (RR) wants to participate in a private
securities transaction. Which of the following actions must the RR take?
- Correct Answer - Send written notice to his supervisor outlining the
activity and compensation structure
A customer BUYS a 1 ABC Jan 35 PUT for a premium of $3 and
simultaneously buys 100 shares of ABC stock for $35 per share. The
customer will break even when the stock is selling at what price per
share at expiration? - Correct Answer - $38
The call provision of a bond stipulates which of the following factors? -
Correct Answer - Call date and call price
, When is interest on Treasury notes paid? - Correct Answer -
Semiannually
The owner of which of the following products is MOST exposed to
inflationary risk? - Correct Answer - Treasury bonds (because it's long-
term)
A registered representative (RR) who wants to place a mutual fund
advertisement must obtain written approval from which of the following
parties? - Correct Answer - A registered principal of the RR's firm
A company announces a tender offer to its shareholders with the intent
to buy a maximum of 1 million shares of its outstanding stock at $10 per
share and sets no minimum number of shares to be purchased. An
investor wants to participate in this offer and tenders his 1,000 share
position. At the close of the offer period, only 900,000 shares have been
tendered. How many, if any, of the investor's shares will the company
purchase? - Correct Answer - 1,000 (1,000 x 100 = 100,000 shares; 1
million - 900k = 100k)
Broker-dealer ABC seeks to underwrite a municipal securities offering by
a local town in which the mayor is currently seeking re-election. A
municipal finance professional who resides in the town and works for
ABC contributed $200 to the mayor's re-election campaign 13 months
ago. If the employee wants to support the campaign further without
impacting the municipal securities business of the firm, he is permitted to
make an additional contribution of up to what amount? - Correct Answer
- $50 ($250 is the limit PER election)
Which of the following stakeholders has first claim priority in a Chapter
11 proceeding? - Correct Answer - Secured debt holders
[Order of liquidation at bankruptcy:
